POWER BOARD YEAR

Wairarapa Times-Age, 25 May 1944, Page 3

POWER BOARD YEAR

SATISFACTORY RESULT SHOWN IN SPITE OF DIFFICULTIES. CHAIRMAN'S SURVEY. “It is very satisfactory to note from the Secretary-Mau-agcr’s report and from the statements 1 of accounts and balance sheet, the very good financial result achieved during the year which has just closed,” observed Mr A. Campbell Pearce, chairman, of the Wairarapa .Electric Power .Board, at the animal meeting of the hoard al Carterton todav.

■ The profit for the year, Mr Pearce said, was £10,144 2s sd, and of this profit £2262 had already been appropriated for capital expenditure and expended, and £2262 refunded to the Loan Account to repay sinking funds previously paid out of loan, leaving a balance of £5218. Mr Pearce said the position was arrived at as follows: —

Sales of electricity and street lighting, £90.443: sundry, £529; interest. £426; nett profiit. trading. £1857; total £ 93,256. Cost power, P.W.D.. £30,908; generation and distribution, £13,668; interest, £13,554: sinking fund and repayment loans, £12,075; depreciation and replacements, £5967; general, £8771; metering water heaters, £828; construction and reconstruction, £2262; total, £BB, 037.

“A detailed examination of the accounts,’’ Mr. Pearce went on to observe, "does reveal the fact that the result is in some respects exceptional, and the effect of circumstances which are not likely to be recurring. The credit balance will, however, prove most useful in providing for post-war development work and delayed reconstruction work." “One feature which has become more and more obvious as the war progresses is that, in spite of the many restrictions which the Government has had to impose on account of the shortage of materials and the shortage of power, and in spite of the curtailment in development. which has taken place on that account, there have been other compensating factors which have made it possible for the board to show a satisfactory profit each year. SUPPLY RESTRICTIONS. “Although revenue has been limited, some expenditure has also been limited, and in some cases reduced, or at ■least delayed. From a national point of view, the position regarding the supply of materials has eased somewhat during the past three or four months. The position regarding the supply of power has, however, deteriorated, due to the unavoidable increase in the demand. We cannot, I think, anticipate any appreciable improvement until 1946. Whatever the financial result may be, there can be no feeling of real satisfaction as long as the restrictions arfc in force. We accept them as a war measure and ask the consumers to do likewise, and to assist the Government all they can in the difficult situation with which it is faced. Considering what might have happened in this country and what is happening in some countries, the sacrifice asked and the inconvenience caused, are very slight.’ “Whilst it is admitted that under existing circumstances the restrictions cannot be avoided, they arc, of course, inimical to progress and have blocked development in many ways. It is no exaggeration to state that except for those restrictions, the board would have sold last year, at least two million units more than it did. RURAL RETICULATION. 1 “Rural reticulation, and in particular the extensive Tinui district scheme, has been held up. A good deal of the preliminary work which was completed in connection with that scheme will have to be repeated. Conditions have changed, and the board should consider what action is proposes to take and then discuss the matter with the settlers concerned, so that there will be no delay when circumstances are such that the scheme can be proceeded with. WATER HEATING CHARGES. <

“A very important change was made in the method of charging for power used for water heating,” Mr. Pearce observed. “The flat rate charged was almost universal throughout the North Island. It had been proved that such method of charging led to an extravagant and wasteful use of electricity, and, accordingly, the Government introduced the regulation which provided for the metering of such power. The generating stations, just as much as the supply authority undertaking, are publicly owned, and taking the long view, the change -'will be of benefit to all concerned, including the consumers. Some consumers may experience a small increase in cost, especially during the winter months. Over the whole year, however, and taking holiday and such like periods into consideration, the increase, if any, will be small, and many consumers will, without doubt, find that their costs are reduced. To compensate for the extra benefits which it was estimated the board might receive, the charges for domestic supply were reduced £1146 per annum. The domestic rate is now as simple and straightforward and as low as that of any rural board in New Zealand.”

Mr. Pearce thanked and congratulated the Secretary-Manager (Mr. Geo. Brown) and the whole of the staff for their excellent services during the oast year. He also thanked board members for their loyal support and for their keen interest in board affairs.

“Judging by our past experience,” the chairman concluded, “we can face the current year with confidence and plan in some detail for the development and reconstruction work which will have to be undertaken after the War.”